How Education Creates Your Wages, A Case of Manufacturing and Retail Companies in Surabaya

Authors

  • Esther Elysia Kurniawan Universitas Wijaya Kusuma Surabaya
  • Sony Kristiyanto Universitas Wijaya Kusuma Surabaya

DOI:

https://doi.org/10.30742/equilibrium.v20i1.3634

Keywords:

Worker, Wages, Education, Skills, Labor Market

Abstract

Education has an important role in the labor market. One component in determining the level of wages for workers is the level of education that the worker has. Apart from that, the level of education is one of the requirements for workers to be able to reach a certain level of position. The problem that then arises is how the level of education can reflect the level of wages that workers will receive, especially workers in the manufacturing and retail industries. In some cases, even though the level of education plays an important role, work experience, worker skills and the performance of the worker concerned are the keys for workers to get higher wages. This condition then gave rise to a debate regarding whether or not education was necessary in the labor market and whether it was true that the level of education would correlate with workers' wages. By using qualitative research methodology with a phenomenological paradigm, this research tries to reveal more details about this phenomenon. Manufacturing and retail companies were chosen as research subjects considering the complexity of the workers working in these companies. Manufacturing and retail companies have complex characteristics in their employment structure. Meanwhile, Surabaya was chosen because the city of Surabaya has the characteristics of an industrial and trade city in its economic structure. This research comes to the conclusion that basically education will be able to have an impact on workers' wages, but how big this impact will be will depend on the company where the worker works. A wage system that relies on bonuses or commissions based on worker performance will indirectly mean that the impact of education on wages will not be visible in real terms.

References

Andy Cahyono, S., Ainun Jariyah, N., & Indrajaya, Y. (2006). Karakteristik Sosial Ekonomi Yang Mempengaruhi Pendapatan Rumah Tangga Penyadap Getah Pinus Di Desa Somagede, Kebumen, Jawa Tengah. Jurnal Penelitian Sosial Dan Ekonomi Kehutanan, 3(2), 147–159. https://doi.org/10.20886/jpsek.2006.3.2.147-159

Blaug, M. (1972). The Correlation Between Education and Earnings: What Does It Signify? Higher Education. http://www.jstor.org/stable/3445959

Borjas, G. J. (2020). Labor Economics Second Edition. Mc Graw Hill.

Dedi julianto, & Anisa Putri Utari. (2018). Analisa Pengaruh Tingkat Pendidikan Terhadap Pendapatan Individu Di Sumatera Barat. XII(10), 47–51.

Iksan, M., & Arka, S. (2022). Pengaruh Upah, Pendidikan, Dan Pertumbuhan Ekonomi Terhadap Kesempatan Kerja Serta Kemiskinan Provinsi Jabar Bagian Selatan. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 11(1), 147. https://doi.org/10.24843/eep.2022.v11.i01.p07

Kampelmann, S., Rycx, F., Saks, Y., & Tojerow, I. (2018). Does Education Raise Productivity And Wages Equally? The Moderating Role of Age And Gender. IZA Journal of Labor Economics, 7(1), 1–37. https://doi.org/10.1186/s40172-017-0061-4

Mamuaya, Y. M. D., & Pratomo, G. (2020). Analisis Pengaruh Upah Dan Modal Terhadap Penyerapan Tenaga Kerja Pada Usaha Kecil Menengah Industri Laundry Di Kota Surabaya. Economie: Jurnal Ilmu Ekonomi, 1(2), 129. https://doi.org/10.30742/economie.v1i2.1128

Marco Francesconi, J. Michael Orszag, E. S. P. and G. Z. (2000). Education And The Natural Rate of Unemployment. Oxford Economic Papers, 52(1), 204–223. http://www.jstor.org/stable/3488749

Perez, A. (2010). Munich Personal RePEc Archive Education and Long-Term Unemployment. 25073.

Prasetya, A. A. (2021). Pengaruh Tingkat Pendidikan, Upah Minimum, Pertumbuhan Ekonomi Dan Inflasi Terhadap Penyerapan Tenaga Kerja Di Indonesia. Jurnal Berkala Ilmiah Efisiensi, 1–22.

Psacharopoulos, G., & Patrinos, H. A. (2018). Returns To Investment In Education: A Decennial Review of The Global Literature. Education Economics, 26(5), 445–458. https://doi.org/10.1080/09645292.2018.1484426

Rahman, A., Munandar, S. A., Fitriani, A., Karlina, Y., & Yumriani. (2022). Pengertian Pendidikan, Ilmu Pendidikan dan Unsur-Unsur Pendidikan. Al Urwatul Wutsqa: Kajian Pendidikan Islam, 2(1), 1–8.

Sikula, A. E. (2011). Manajemen Sumber Daya Manusia. Erlangga.

Sukirno, S. (2011). . Introduction to Macroeconomic Theory. PT King Grafindo Persada.

Wijaya, I. K. C., & Utama, I. M. S. (2013). Pengaruh Teknologi Terhadap Penyerapan, Pendapatan, Produktivitas Dan Efisiensi Usaha Pada Industri Kerajinan Genteng Di Desa Pejaten. E-Jurnal EP Unud, 2(9), 414–422.

Downloads

Published

2024-04-05

Issue

Vol. 20 No. 1 (2024): April

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work